By Onome Amuge.
Stanbic IBTC Holdings PLC, a member of Standard Bank Group, showcased a significant increase in profitability and key financial metrics which saw the company’s profit after tax (PAT) surge 121 per cent to N67.92 billion in the first half of 2023 compared to the corresponding period of 2022.
The leading end-to-end financial institution in Nigeria also recorded profit before tax (PBT) of N82.99 billion, up 108 per cent from the PBT recorded in the same period for 2022.
Driven by robust growth across its revenue streams,the company’s net interest income rose by 44 per cent, amounting to N72.68 billion. Additionally, non-interest revenue appreciated 57 per cent to reach N98.62 billion.
According to the audited financial results for the first half of 2023, the initial months of 2023 were dominated by significant incidents like the general elections and cash scarcity, which temporarily impacted business activities.
However, a positive movement was achieved in the second quarter as business activities gained momentum. The Stanbic IBTC Bank Purchasing Manager Index (PMI) rebounded, surpassing the 50-point mark in April 2023, to close at 53.2 in June 2023, indicating positive economic trends. Improved access to cash, heightened customer demand, and business expansion also contributed to the resurgence, the company stated.
Commenting on the bank’s financial performance, Demola Sogunle, chief executive, Stanbic IBTC, said the first half of 2023 was an eventful one for the company operating as an organisation within the Nigerian operating environment as it reported significant growth in key income lines during the period under review.
According to Sogunle, the group’s profitability increased by over 100 per cent year-on-year (YoY), driven by growth across our revenue streams. Similarly,interest income grew by 62 per cent YoY, mainly due to higher yield and volume of loans and investments, driven by the company’s efforts to support clients through loan offerings and investment opportunities.
He also disclosed that the organisation retained its Fitch AAA (nga) rating, reaffirming its position as the only financial services provider in Nigeria with the highest rating from a global rating agency, while assuring that the organisation will continue supporting its clients’ growth by providing solutions that aid their expansion.
The chief executive further noted that the company’s financial position saw significant strengthening, evident in key metrics such as total assets, gross loans and advances, and customer deposits. This is as total assets increased by 47 per cent to N4.45 trillion, gross loans and advances rose by 37 per cent to N1.70 trillion, while customer deposits reached N1.64 trillion, marking a growth of 32 per cent.
Sogunle expressed optimism regarding the company’s performance for the rest of the year, emphasisng the company’s dedication to delivering on its 2023 guidance and continuing to provide solutions that unlock the potential of the African market.